UK advisers ditched property funds in general election month

UK advisers switched out of property in June as the general election delivered political uncertainty as part of a wider reduction in domestic bias during the second quarter, analysis by Natixis Global Asset Management shows.

Portfolio Research & Consulting Group senior consultant Andrew Kinsey-Quick says the trend appears to be continuing, with reallocation from domestic to global equities.

Sales data from The Share Centre from July shows investors ditching UK exposure for global equities with Neil Woodford’s Income Focus fund falling out of focus out of its best-selling fund list.

“Within the Fixed income space we have seen some growth in domestic exposures but a more notable growth in non-domestic fixed income,” Kinsey-Quick notes.

“The reduction in domestic bias is positive as international assets should provide much-needed diversification in the event of the UK suffering a hard Brexit – from both currency in the short term and asset returns in the longer-term.”